Private equity firm Blackstone just announced that it has reached an agreement to acquire mobile advertising company Vungle.
The companies aren’t disclosing the financial terms, but as part of the transaction, Vungle has also reached a settlement with founder Zain Jaffer, who filed a wrongful termination lawsuit against the company earlier this year.
“As a best-in-class performance marketing platform, Vungle represents a key growth engine for the mobile app ecosystem,” said Blackstone principal Sachin Bavishi in a statement. “Our investment will help deliver on the company’s tremendous growth potential and we look forward to partnering with management to extend Vungle’s strength across mobile gaming and other performance brands.”
Meanwhile, CEO Rick Tallman said the deal will allow the company to “further accelerate Vungle’s mission to be the trusted guide for growth and engagement, transforming how users discover and experience mobile apps.”
Vungle was founded back in 2011, and according to the acquisition release, it’s currently working with 60,000 mobile apps worldwide, serving more than 4 billion video views per month and working with publishers like Rovio, Zynga, Pandora, Microsoft and Scopely.
Jaffer led Vungle as CEO until October 2017, when he was arrested on charges including performing a lewd act upon a child and assault with a deadly weapon. The charges were ultimately dropped, with the San Mateo County District Attorney’s office stating that it “not believe that there was any sexual conduct by Mr. Jaffer that evening,” while “the injuries were the result of Mr. Jaffer being in a state of unconsciousness caused by prescription medication.”
In his lawsuit, Jaffer alleged that after the charges were dropped, “Vungle unfairly and unlawfully sought to destroy my career, blocked my efforts to sell my own shares or transfer shares to family members, and tried to prevent me from purchasing shares in the Company.”
In a statement today, Jaffer said, he is “pleased with the terms of the settlement, which are confidential.” He also commented on the acquisition:
It is extremely gratifying for me to see our early vision, execution and the hard work of so many talented people rewarded like this. From Day 1, Vungle has been at the forefront of the changing advertising landscape. Today, companies of all sizes, and in all industries, are utilizing in-app video ads as an integral part of their customer acquisition strategies.
The acquisition is expected to close later this year. According to Crunchbase, Vungle previously raised more than $25 million from Crosslink Capital, Thomvest Ventures and others.